MUMBAI: The housing department led by senior BJP politician Prakash Mehta has published the draft rent control rules to provide for a rise in rent on account of improvements or structural alterations, special additions to premises or amenity addition.

It has given the procedure for temporary increase of rent on account of special or structural repairs and the procedure for fixing standard rents.

A housing department official said the department published the draft Maharashtra Rent Control Rules, 2017, following a high court order a year ago. "We expect to receive objections and suggestions. We will consider these and come out with final rules as early as possible," he said.

In case of improvements or structural alterations, special additions or addition of amenities, the draft rules allow an amount not exceeding 15% per annum of the expenses incurred to be added to the rent. Where such work on premises with only one tenant is undertaken by the landlord at the instance of a local authority for the tenant's benefit and with his consent, the whole amount is added to the rent.

When such work is done at the instance of a local authority or with the written consent of a majority of tenants for the benefit two or more tenements or for purposes of upkeep, stability and other requirements taken as a whole, the amount of permitted increase shall be allocated to the tenements in proportion to their respective annual rental values.

On the procedure to be followed to temporarily increase rent on account of special or structural repairs, the draft rules say the landlord will have to apply to the municipal corporation, submitting all details like names of tenants and architect entrusted with the task.

"Temporary increase in rent of premises by addition of rent, not exceeding 25% of the standard rent, is permitted on account of special or structural repairs," the official said.

When any such repairs are done on premises occupied by a single tenant, the whole amount of permitted increase may be added to the rent. If there are more tenants, then the proportionate amount of permitted increase may be added to the rent of the premises occupied by each such tenant.

The rules also provide for procedure to be followed by the court in suits, proceedings as well as the procedure for fixing the standard rents.

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.